Philip Hammond will be trying to win the hearts and minds of Millennials in the Budget when he announces new plans to get 300,000 homes built a year.
The Chancellor believes that mending the housing market was a ‘crucial part’ of making sure the younger generation are not the first for 400 years to be less well-off than their parents.
He said the Government would do ‘whatever it takes’ to get homes built by underwriting loans to small house builders if necessary.
Mr Hammond will spend £5billion for housing schemes.
Figures show more than 217,000 homes were built last year but the Chancellor said: ‘I’m clear that we need to get to 300,000 units a year if we are going to start to tackle the affordability problem with the additions coming in areas of high demand.’
He said: ‘We will not allow the current young generation to be the first since the Black Death not to be more prosperous than its parents’ generation. We won’t allow that to happen.
‘Fixing the housing market is a crucial part of making sure that doesn’t happen.’
Mr Hammond said ministers would work to close the gap between planning permissions being granted and the actual number of homes being built, signalling a review into ‘land-banking’ and councils blocking development.
‘We will not be afraid to intervene to do whatever it takes to close the gap,’ he said. ‘If it’s infrastructure that’s needed to unlock housing, we’ll build the infrastructure.
‘If it’s financial viability that’s needed, we will intervene to remediate sites and make otherwise marginally non-viable sites viable.
‘We’ve also got to make sure our banks are willing to lend to small house builders and if necessary we will stand behind that lending.’
Mr Hammond also said he would find money to lift the public sector pay cap and find more cash for services like the NHS.
‘We’ve got to recognise that people in our public services feel under pressure from a long period of pay restraint,’ he said.
‘The public -services themselves have strained every muscle, every sinew to deliver within very tight resource envelopes. We’ve got to do what we can.’
He said he remains committed to getting the deficit down and would not brazenly loosen the purse strings, but stressed he has scope to spend.
‘We are heavily constrained fiscally,’ he said. ‘We don’t have huge amounts of room for manoeuvre. But we do have some room.’